Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/271974 
Year of Publication: 
2023
Series/Report no.: 
CESifo Working Paper No. 10330
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
We study the effects of forward-looking communication in an environment of rising inflation rates on German consumers' inflation expectations using a randomized control trial. We show that information about rising inflation increases short- and long-term inflation expectations. This initial increase in expectations can be mitigated using forward-looking information about inflation. Among these information treatments, professional forecasters' projections seem to reduce inflation expectations by more than policymaker's characterization of inflation as a temporary phenomenon.
Subjects: 
short-run and long-run inflation expectations
inflation surge
randomized control trial
survey experiment
persistent or transitory inflation shock
JEL: 
E31
E52
E58
D84
Document Type: 
Working Paper
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